OECD Discussion Draft on BEPS: Funds’ Treaty Access under Threat

The OECD published a revised discussion draft on 22 May 2015 in relation to the BEPS measures to address treaty abuse. Given the extensive submissions made by various parties on behalf of the fund industry, it was hoped that the revised discussion draft would contain measures to address the special requirements of funds and provide a clear path to treaty access post-BEPS. Unfortunately, the discussion draft provides no comfort that these concerns will be addressed and raises the prospect that funds will face increased tax leakage in the future.